DEGO Protocol — Decentralized Finance with Sustainability

Yield Farming has recently been the focus of interest and discussion in the broader crypto community, initiating a new era for DeFi via liquidity mining.

The popular formulas of current liquidity mining are:

Daily output per user = daily output of the mining pool * staked amount/total staked amount

Under this model, the whales🐳 become the top winners, they can easily take away nearly all liquidity rewards and irrational sellout their yield. And this is a harsh predatory game for shrimps🦐. With the rise of yield farming, whales are the most common concern for DeFi farmers.

To solve this problem and toward a more sustainable ecosystem of DeFi, we create the 👉Liquidity mining with algorithmic adjusted.

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In DEGO, we used a set of deterministic algorithms for liquidity mining, convert the LP token staked by users into POWER(similar to the hashrate of Bitcoin mining), and getting earnings through them. Under this model:

Daily output per user = daily output of the mining pool * POWER / total POWER

POWER = staked LP token amount * coefficient of correspondence

📝The calculation formula of POWER are:

1/ We divide users into three ranges according to their staked amount:

a) Worst range: users with the most staked amount
POWER=1*staked amount

b) Best range: users with the intermediate staked amount
POWER=5*staked amount

c) Common range: users with the smallest staked amount
POWER=3*staked amount

  • For example, User A staked 10 LP Tokens and is currently in the common range, then his POWER is 10 * 3 = 30 POWER

The numbers of the initial three ranges are, [10, 10, total number-20]

As the total number of users increases by 100 people, the worst range and the best range increase by 10 slots, up to a maximum of 50 people.

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*If the user staked less than three days, 10% of the earnings are deducted during withdrawal and transfer to the dividend pool.

With DEGO Protocol, we’re able to achieve a more decentralized and sustainable ecosystem of liquidity mining.

In the next couple of days, DEGO will launch it’s Testnet on the Ethereum Network🎉. We welcome everyone to join us and be a part of the next generation of liquidity mining.

📢 Visit us at DEGO.Finance, follow us on Twitter, join us on Telegram & Discord.

DEGO.Finance — Decentralized Finance with Sustainability

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